Question

1- A is Trading and Tourism Company.
2- B is the owner of a Building


A interred with B in to an investment Contract where A will take the building as investment which is owned by B and will turn to Hotel. It was agreed that, A prior to invest will take the approval from B on the plans and drawings. A sent the plans and the drawing to B for his approval. It was agreed that within a week if there were no answer from any of the parties on the correspondences of the other for any approval, therefore, it would mean that approval has been granted. A has started to do all the changes according to the plans and the drawings after a week from sending the plans. After a month A has received the reply from B with changes made in the plans and drawings. A has ignored the reply and continue the changes according to his plans. B was not happy and has demanded A to stop the work in the building and deliver the building at the same conditions he received it. A has replied to B that he has invested in the building according to the contract and if he wants the building back he has to pay the cost of his investments and the remedies of the damages that he has incurred. B has refused his demands and asked A to pay for all the repairs and damages caused to his building.
You have been contacted as mediator between the A and B Please answer the following:

1. What kind of relation between A and B?
2. Identify the responsibility for both parties and their civil rights.
3. What is the real problem between the two parties?
4. Does B have the right to stop work in the building and does A have the right to ignore B’s changes in the plans?
5. What action A should take to make B accept the plans and drawings and to finish the work?
6. In your conclusion, you should provide a good solution for A and B to continue to work together without going to litigation.

Answer 1

1)Both A and B are bound in a legal relation of contract.

2)Responsibility of both parties :

• A will take the building as investment which is owned by B and will turn to Hotel
• A prior to invest will take the approval from B on the plans and drawings.
• A had to sent the plans and drawing and within a week if there were no answer from any of the parties on the correspondences of the other for any approval

Rights:

• A will turn the building in hotel owned by B.
• B have the rights to make changes in the plan but informed within a week.

3) The real problem among both is the communication gap within the time mentioned as per contract.

4)No, according to the contract B do not have the right to stop the work but A had the right to ignore the B’s changes in the plans.

5)To complete the work A should either agree with B's demand fully or partially.

6)The best solution to resolve without conflict is that both parties should face few losses and adjust the changes on the 50-50 preference.

and also make the favourable changes but from the work from where it has to be carried down further and do not change the work done because that would increase the cost of project.